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SonySoft said:
To make matters worse, all the mid-tier development teams are no longer considering the system for Japan-only releases.

Er, Cave, G.Rev, 5pb, Alchemist, Koei and others disagree.  360 basically inherited the STG/ADV okatku-core legacy in Japan.  Previous torchbearers include PC Engine, Saturn and Dreamcast... honestly, it probably has more JP only releases coming up than PS3.